VA awards $1.98M for XR Interventional Modality to Philips, highlighting irradiation apparatus manufacturing needs

Contract Overview

Contract Amount: $1,979,247 ($2.0M)

Contractor: Philips North America LLC

Awarding Agency: Department of Veterans Affairs

Start Date: 2025-09-23

End Date: 2026-09-15

Contract Duration: 357 days

Daily Burn Rate: $5.5K/day

Competition Type: FULL AND OPEN COMPETITION

Number of Offers Received: 3

Pricing Type: FIRM FIXED PRICE

Sector: Healthcare

Official Description: MODALITY: XR INTERVENTIONAL PURCHASE ORDER: 589B53004 STATION: VAMC COLUMBIA, MO REQUIREMENT: MARCH FY25 EQ CONSOLIDATION

Place of Performance

Location: BOTHELL, SNOHOMISH County, WASHINGTON, 98021

State: Washington Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.0 million to PHILIPS NORTH AMERICA LLC for work described as: MODALITY: XR INTERVENTIONAL PURCHASE ORDER: 589B53004 STATION: VAMC COLUMBIA, MO REQUIREMENT: MARCH FY25 EQ CONSOLIDATION Key points: 1. The contract value of $1.98M for an XR Interventional Modality appears reasonable given the specialized nature of irradiation apparatus manufacturing. 2. Full and open competition was utilized, suggesting a healthy market and potential for competitive pricing. 3. The contract duration of 357 days indicates a focused, short-term need for the specified equipment. 4. The award to Philips North America LLC, a known entity in medical technology, provides a degree of performance predictability. 5. This purchase order aligns with the Department of Veterans Affairs' ongoing efforts to modernize medical equipment for patient care. 6. The North American Industry Classification System (NAICS) code 334517 points to a specific manufacturing sector, ensuring specialized production.

Value Assessment

Rating: good

The contract value of approximately $1.98 million for an XR Interventional Purchase Order is within a typical range for specialized medical equipment of this nature. Benchmarking against similar procurements for advanced imaging or interventional radiology systems suggests that this price reflects the technological sophistication and manufacturing requirements. While specific per-unit cost data is not provided, the overall award amount appears to be a fair reflection of the market for such high-end medical devices, especially considering the supplier's established presence.

Cost Per Unit: N/A

Competition Analysis

Competition Level: full-and-open

This contract was awarded under a full and open competition, indicating that multiple vendors had the opportunity to bid. The presence of three bidders (no=3) suggests a competitive environment, which typically drives better pricing and value for the government. The fact that the award was made under this broad solicitation implies that the chosen offer met the technical and price requirements effectively, and that the competition process yielded a satisfactory outcome for the Department of Veterans Affairs.

Taxpayer Impact: A full and open competition ensures that taxpayer dollars are used efficiently by fostering a competitive environment that can lead to lower prices and better quality goods and services.

Public Impact

Veterans receiving care at the VAMC Columbia, MO, will benefit from advanced XR interventional radiology capabilities. The contract will facilitate the delivery of enhanced diagnostic and treatment services through the new modality. The geographic impact is localized to the VAMC Columbia, MO facility, directly serving the veteran population in that region. The acquisition supports the healthcare workforce by providing them with state-of-the-art equipment for improved patient management.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Potential for vendor lock-in if follow-on support or consumables are not competitively procured.
Ensuring the long-term maintenance and calibration costs are managed effectively post-installation.
Verifying that the chosen modality integrates seamlessly with existing VAMC IT and imaging infrastructure.

Positive Signals

Awarded through full and open competition, indicating a robust bidding process.
Philips North America LLC is a reputable manufacturer with a track record in medical technology.
The fixed-firm price contract provides cost certainty for the Department of Veterans Affairs.

Sector Analysis

The procurement falls within the medical equipment manufacturing sector, specifically focusing on irradiation apparatus. This industry is characterized by high research and development costs, stringent regulatory requirements (e.g., FDA approval), and a market dominated by a few key global players. The size of the market for interventional radiology equipment is substantial, driven by advancements in medical imaging and minimally invasive procedures. This contract represents a specific investment by the VA in upgrading its diagnostic and therapeutic capabilities within this specialized segment.

Small Business Impact

There is no indication that this contract was specifically set aside for small businesses. Given the specialized nature of XR interventional modalities and the likely requirement for established manufacturing capabilities and certifications, it is probable that larger, established firms like Philips North America LLC were the primary bidders. Subcontracting opportunities for small businesses may exist in areas such as installation, training, or peripheral equipment, but are not explicitly detailed in the provided data.

Oversight & Accountability

The Department of Veterans Affairs (VA) has established oversight mechanisms for such procurements, including contract administration and performance monitoring. The firm-fixed-price nature of the contract provides a degree of cost control. Transparency is generally maintained through federal procurement databases like SAM.gov. The VA Office of Inspector General (OIG) would have jurisdiction to investigate any potential fraud, waste, or abuse related to this contract, ensuring accountability.

Related Government Programs

VA Medical Equipment Procurement
Radiology and Imaging Equipment
Medical Device Manufacturing
Interventional Radiology Systems
Department of Veterans Affairs Healthcare Services

Risk Flags

Potential for high long-term maintenance costs.
Risk of technological obsolescence.
Dependence on a single supplier for specialized parts or service.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.0 million to PHILIPS NORTH AMERICA LLC. MODALITY: XR INTERVENTIONAL PURCHASE ORDER: 589B53004 STATION: VAMC COLUMBIA, MO REQUIREMENT: MARCH FY25 EQ CONSOLIDATION

Who is the contractor on this award?

The obligated recipient is PHILIPS NORTH AMERICA LLC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $2.0 million.

What is the period of performance?

Start: 2025-09-23. End: 2026-09-15.

What is the specific model of the XR Interventional Modality being procured, and what are its key technical specifications?

The provided data does not specify the exact model of the XR Interventional Modality. However, the NAICS code 334517 (Irradiation Apparatus Manufacturing) and the description 'XR INTERVENTIONAL PURCHASE ORDER' suggest a sophisticated piece of medical equipment used for diagnostic imaging and potentially therapeutic interventions involving X-rays. Key technical specifications would typically include imaging resolution, radiation output, patient positioning capabilities, integration with other systems, and safety features. Further details would likely be found in the detailed statement of work or technical specifications appended to the contract award.

How does the $1.98 million contract value compare to similar procurements for XR interventional systems by other federal agencies or healthcare providers?

Without specific model details and a comprehensive market analysis, a precise comparison is challenging. However, advanced medical imaging and interventional radiology systems can range from hundreds of thousands to several million dollars, depending on their capabilities, brand, and included services (installation, training, warranty). Given that this is a purchase order for a specialized modality, $1.98 million appears to be within a reasonable range for a single system from a major manufacturer like Philips. A more detailed benchmark would require comparing against contracts for systems with similar specifications, such as C-arms, angiography suites, or specialized X-ray therapy units, from entities like the Department of Defense or other large healthcare networks.

What is Philips North America LLC's track record with the Department of Veterans Affairs for similar medical equipment procurements?

Philips North America LLC is a significant player in the medical technology market and has a history of supplying equipment to the Department of Veterans Affairs and other federal healthcare providers. While this specific data does not detail their past performance on VA contracts, their established presence suggests they have successfully navigated VA procurement processes and met performance requirements in the past. A deeper dive into contract history databases would reveal the extent and nature of their previous awards, including any performance issues or commendations.

What are the potential risks associated with the long-term maintenance and operational costs of this XR Interventional Modality?

Potential long-term risks include the cost and availability of replacement parts, the need for specialized technicians for maintenance and repair, and the potential for obsolescence as technology advances. Service contracts, often negotiated separately or as part of the initial purchase, can mitigate some of these risks but represent an ongoing operational expense. The VA will need to ensure that maintenance agreements are competitively priced and that the chosen modality has a reasonable lifecycle, factoring in future upgrades or replacements to avoid escalating operational costs and ensure continued clinical utility.

How will the implementation of this new XR Interventional Modality impact patient wait times and access to care at VAMC Columbia, MO?

The implementation of a new, potentially more advanced XR Interventional Modality is generally expected to improve patient care efficiency. This could lead to reduced patient wait times for diagnostic imaging and interventional procedures, as newer equipment often offers faster scan times, improved image quality leading to quicker diagnoses, and enhanced capabilities for complex interventions. However, the actual impact will depend on factors such as the training of the medical staff, the integration of the new system into existing workflows, and the overall demand for these services at the VAMC Columbia. Effective scheduling and resource management will be crucial to maximizing the positive impact on patient access.

What is the historical spending pattern of the VA on irradiation apparatus and similar medical imaging equipment over the past five fiscal years?

The provided data does not include historical spending patterns. However, federal agencies like the VA typically have significant and consistent spending on medical equipment to maintain and upgrade their facilities. Spending on irradiation apparatus and related imaging equipment would likely fluctuate based on capital investment cycles, identified clinical needs, and budget allocations. Analyzing historical VA spending data from sources like USAspending.gov or agency budget reports would be necessary to identify trends, major procurement categories, and the overall investment in this area.

Industry Classification

NAICS: Manufacturing › Navigational, Measuring, Electromedical, and Control Instruments Manufacturing › Irradiation Apparatus Manufacturing

Product/Service Code: MEDICAL/DENTAL/VETERINARY EQPT/SUPP

Competition & Pricing

Extent Competed: FULL AND OPEN COMPETITION

Solicitation Procedures: SUBJECT TO MULTIPLE AWARD FAIR OPPORTUNITY

Solicitation ID: 36A797825Q0006

Offers Received: 3

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 22100 BOTHELL EVERETT HWY, BOTHELL, WA, 98021

Business Categories: Category Business, Corporate Entity Not Tax Exempt, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $1,979,247

Exercised Options: $1,979,247

Current Obligation: $1,979,247

Contract Characteristics

Multi-Year Contract: Yes

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Parent Contract

Parent Award PIID: VA797H17D0022

IDV Type: IDC

Timeline